FTSE 100	4319.35, +102.76	Dow	8483.93, -31.62
FTSE 250	6350.56, +34.74	Nasdaq	1510.32, -19.92
FTSE All Share	2157.78, +46.41	S&P 500	869.42, -3.38
Nikkei	8859.56, +112.39	Hang Seng	14235.5, -92.98
Oil (Crude)	$40.02	Gold	$874.60
Base Rate	2%	10 Yr Gilt	3.13%
£/$	1.449	£/€	1.0246
1 month LIBOR	2.295	3 month LIBOR	2.935

 

Markets

London - The FTSE 100 is currently 37.69 points higher at 4,357.04. Hammerson is the top performer, up 3.3%, rebounding from yesterday’s slide of 5.5% following concerns over the health of their tenants in the retail sector. Oil producer’s gain following the rise in oil prices, BP adds 1.5% while Royal Dutch gains 1.75%. Rolls-Royce climbs 1.3% after winning a contract from Russia’s Gazprom.

New York - US stocks fell yesterday following disappointing news from the country’s largest chemical company. Although rising energy stocks tempered losses after oil prices rose 6% as Israeli warplanes continued to strike the Gaza Strip. The Dow Jones slipped 31.62 points to close at 8,483.93; the Nasdaq slipped 19.92 points to end at 1,510.32. The S&P 500 edged 3.38 points lower to finish at 869.42.

Dow Chemical plunged 19% after a deal with Kuwait’s state-run petrochemical company fell apart. Petrochemical Industries decided to end the $17.4 billion joint venture, citing the recent decline in oil prices and the global financial crisis. The news also raised doubts that Dow would be able to complete its $15.3 billion purchase of rival Rohm & Haas, which fell 16% on the news.

Chevron Corp and Exxon Mobil were among the top performers on the Dow following a rise in oil prices. US light crude oil for February delivery jumped $2.31 to $40.02 a barrel. The third day of fighting continued to push the commodity higher and it is thought that Israel is now preparing to launch a possible invasion. Chevron added 1.7% while Exxon gained 1.1%.

COMEX gold for February delivery rose $4.20 to settle at $874.60 an ounce. Treasury prices rose, lowering the yield on the 10 year note to 2.1% from 2.16%.

Tokyo - The Nikkei climbed 112.39 points to end at 8,859.56 this morning as markets closed early ahead of the New Year holidays. Energy stocks lifted the market as a result of the tensions in the Gaza Strip. Oil explorer Inpex Corp advanced 5.1% while Mitsubishi Corp, which gets half its profit from commodities, gained 2.8%.

Hong Kong - The Hang Seng slid 92.98 points lower to close at 14,235.50 this morning. Foxconn International Holdings fell after the city’s exports retreated for the first time in five months, while Henderson Land Development Co dropped after mortgages declined.

 

Economics

No economic data to report.

Corporate

British engines and power systems maker Rolls-Royce has won a contract from Russia’s Gazprom to supply gas compression equipment for the new Nord Stream gas pipeline from Russia to Europe. Rolls-Royce said on Tuesday it would supply eight industrial aero derivative gas turbines driving centrifugal compressors for the new 1,200 km pipeline. It did not give a value for the contract. First compression packages are expected to be shipped in May 2010, with additional sets being delivered during
that year, it said in a statement. 

Trustees of the pension scheme at HBOS are considering taking legal action to delay its planned merger with Lloyds TSB until it gets guarantees on the scheme’s funding, the Financial Times said. The trustees of the pension scheme with an estimated shortfall of £3 billion to £5 billion are concerned the merger will leave the debt backed only by the covenants of subsidiary companies, the FT said on Tuesday. They are therefore meeting on Friday to hold a formal vote on whether to challenge the Scheme of Arrangement proceedings, which are set to officially approve the merger on January 12th. HBOS said it believed the merger with Lloyds offered the best form of protection for its employees. Shareholders of HBOS, which is raising 11.5 billion pounds from the government and investors to shore up its balance sheet, overwhelmingly voted in favour of the takeover by Lloyds on December 12th.

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The above details are provided for information only and are not intended to be construed a solicitation for the sale or purchase of any particular investment nor as specific investment advice.

 

 

Posted: December 30th, 2008 under Asset Management.
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